Life Settlement Sales Strategies

A flood of financial professionals are entering into the marketplace, including insurance agents, CPA networks, life settlement brokers, estate and financial planners, BGAs, broker-dealers, and insurance entities. This trend has focused more attention on the need for education and resources related to life settlements, including the best way to start a life settlement practice.  The following information outlines seven simple steps to conduct a life settlement marketing program. 

The following steps outline a potential marketing strategy to initiate a life settlement with a client, when appropriate.

STEP 1 - Identify potential candidates from existing clientele and prospects.

• Minimum age 65 or older; most viable candidates tend to be females 75+, males 72+
• Policies still in contestability are not applicable; policies must be at least 2+ years old
• Type of policies is typically universal life (individual or survivorship); however, many companies accept other types of policies including whole life, term and variable contracts.  Check with each provider’s pricing parameters to determine types of policies they can purchase.
• Average minimum aggregate face value of polices is approximately $250,000

STEP 2 - Conduct a planning meeting with your client to determine their current insurance needs and review their existing life insurance coverage. Determine if their current coverage amount and their in-force policies continue to meet the needs for which they were intended and if those policies are performing in accordance with the needs and expectations of the insured.

STEP 3 - If it is determined that any or all of coverage is not meeting the performance expectations, then a life settlement transaction may be suitable for consideration and you can recommend that a settlement should be further explored. Other factors such as affordability and current insurability of the client will ultimately also play a factor in determining the suitability of a settlement for each particular case.

STEP 4 - Once you've determined that a life settlement is a viable option, gather relevant medical information, policy information and complete settlement applications and client authorizations.

STEP 5 - Research reputable life settlement providers or brokers to obtain pricing offers of policy's fair market value. Characteristics to look for include:

• Brokers
• Significant industry experience
• Extensive state licensing
• Relationships with top providers in the industry
• Member of the Life Insurance Settlement Association
• Providers
• Have transacted at least $1 billion in aggregate face amount
• Reputable firms solely backed by institutional investors
• Management team that has experience in life insurance industry
• In-house legal team
• Extensive state licensing
• Member of the Life Insurance Settlement Association

STEP 7 - If a life settlement is agreed upon, proceed with the transaction using a broker or direct provider.

Format and distribution:

Electronic format and distribution
Post newsletter onto LSS Website
Web page appearance with LSS logos, slogans and graphics
Each section could be accessed via a tab at the top of the main newsletter page
Contact information and link to LSS website in every newsletter.

This newsletter  is not, and should not be construed as, a solicitation to buy or sell any securities, and neither Life Settlement Solutions, Inc. nor its respective affiliates provides legal, accounting or tax advice.  Nothing contained herein constitutes a recommendation to buy, sell or hold a life settlement, portfolio of life settlements, or any other asset or security.